Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 13

Johnson purchased a television set on thirty days' credit from Martinson Kelly TV Sales and Service Center. While filling out the credit application, Johnson made false statements about his credit rating. Shortly after the purchase was made, Johnson moved to another city without paying for the TV set. Before moving, however, he sold the TV set to Carvel, who knew nothing of the fraudulent transaction. Martinson Kelly traced the sale of the TV to Carvel and demanded the return of the set. May Martinson Kelly legally recover the TV set from Carvel?